VistaPrint Ltd. (VPRT, Financial) filed Quarterly Report for the period ended 2009-12-31.
Vistaprint Ltd. has a market cap of $2.3 billion; its shares were traded at around $53.37 with a P/E ratio of 39 and P/S ratio of 4.5. VPRT is in the portfolios of Ron Baron of Baron Funds, Steve Mandel of Lone Pine Capital.
The increase in our technology and development expenses of $5.3 million for the three months ended December 31, 2009 as compared to the same period in 2008 was primarily due to increased payroll and benefit costs of $3.3 million associated with increased employee hiring in our technology development and information technology support organizations. The increase in our technology and development expenses of $9.1 million for the six months ended December 31, 2009 as compared to the same period in 2008 was primarily due to increased payroll and benefit costs of $5.8 million associated with increased employee hiring in our technology development and information technology support organizations. Both the three and six months ended December 31, 2009 also included $0.4 million related to the cumulative adjustment for share-based payment costs described in Recent Developments above. At December 31, 2009, we employed 330 employees in these organizations compared to 290 employees at December 31, 2008. In addition, to support our continued revenue growth during this period, we continued to invest in our website infrastructure, which resulted in increased depreciation and hosting services expense of $0.6 million and increased other expenses of $0.4 million for the three months ended December 31, 2009 as compared to the same period in 2008. For the six months ended December 31, 2009, depreciation and hosting services expense increased $1.3 million and other expenses increased $0.7 million as compared to the same period in 2008. Included in both the three and six months ended December 31, 2009 is $0.9 million of expense related to the abandonment of certain acquired intangibles recorded in the Soft Sight acquisition that were measured at fair value based on the perspective of a market participant, but we determined not to have an economic use for Vistaprint and were abandoned.
The increase in our marketing and selling expenses of $17.3 million for the three months ended December 31, 2009 as compared to the same period in 2008 was driven primarily by increases of $11.6 million in advertising costs related to new customer acquisition and costs of promotions targeted at our existing customer base, and increases in payroll and benefits related costs of $4.2 million. The increase in our marketing and selling expenses of $29.1 million for the six months ended December 31, 2009 as compared to the same period in 2008 was driven primarily by increases of $20.3 million in advertising and promotion costs and increases in payroll and benefits related costs of $6.5 million. During this period, we continued to expand our marketing organization and our design, sales and services centers. At December 31, 2009, we employed 737 employees in these organizations compared to 622 employees at December 31, 2008. In addition, payment processing fees paid to third-parties increased by $0.8 million and $1.4 million, during the three and six months ended December 31, 2009, respectively, as compared to the same periods in 2008 due to increased order volumes. Both the three and six months ended December 31, 2009 also included $0.4 million related to the cumulative adjustment for share-based payment costs described in Recent Developments above.
The increase in our general and administrative expenses of $5.9 million for the three months ended December 31, 2009 as compared to the same period in 2008 was primarily due to increased payroll and benefit costs of $2.8 million resulting from the continued growth of our executive management, finance, legal and human resource organizations, and increased third-party professional fees of $2.1 million related to ongoing litigation, and other general and administrative activities. The increase in our general and administrative expenses of $8.5 million for the six months ended December 31, 2009 as compared to the same period in 2008 was primarily due to increased payroll and benefit costs of $3.5 million resulting from the continued growth of our executive management, finance and human resource organizations, and increased third-party professional fees of $3.9 million related to ongoing litigation, the execution of our change of domicile to the Netherlands, and other general and administrative activities. Both the three and six months ended December 31, 2009 also included $0.4 million related to the cumulative adjustment for share-based payment costs described in Recent Developments above. At December 31, 2009, we employed 161 employees in these organizations compared to 135 employees at December 31, 2008.
Interest income, which consists of interest income earned on cash and cash equivalents and investments, decreased $0.5 million to $0.1 million for the three months ended December 31, 2009 from $0.6 million generated in the same period in 2008. Interest income decreased $1.1 million to $0.2 million for the six months ended December 31, 2009 from $1.3 million generated in the same period in 2008. The decrease was primarily due to lower interest rate yields on our cash and investments balances.
Interest expense, which consists of interest and other related fees paid to financial institutions on outstanding balances on our credit facilities, decreased to $0.2 million for the three months ended December 31, 2009 as compared to $0.4 million for the same period in 2008. Interest expense decreased to $0.5 million for the six months ended December 31, 2009 as compared to $0.7 million for the same period in 2008. As a result of the early repayment of $5.9 million of our euro revolving credit agreement, we incurred $0.1 million in prepayment penalties for the three and six months ended December 31, 2009. We expect that interest expense will continue to decline in future periods as a result of our early repayment of debt and the final payment in November 2009 of our original Canadian credit facility.
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Vistaprint Ltd. has a market cap of $2.3 billion; its shares were traded at around $53.37 with a P/E ratio of 39 and P/S ratio of 4.5. VPRT is in the portfolios of Ron Baron of Baron Funds, Steve Mandel of Lone Pine Capital.
Highlight of Business Operations:
For the three and six months ended December 31, 2009, we reported 40% and 34% revenue growth over the same periods in 2008 to revenue of $194.6 million and $339.7 million, respectively. Diluted earnings per share (EPS) grew 40% and 51% for the three and six months ended December 31, 2009 over the same period in 2008 to EPS of $0.59 and $0.89, respectively.The increase in our technology and development expenses of $5.3 million for the three months ended December 31, 2009 as compared to the same period in 2008 was primarily due to increased payroll and benefit costs of $3.3 million associated with increased employee hiring in our technology development and information technology support organizations. The increase in our technology and development expenses of $9.1 million for the six months ended December 31, 2009 as compared to the same period in 2008 was primarily due to increased payroll and benefit costs of $5.8 million associated with increased employee hiring in our technology development and information technology support organizations. Both the three and six months ended December 31, 2009 also included $0.4 million related to the cumulative adjustment for share-based payment costs described in Recent Developments above. At December 31, 2009, we employed 330 employees in these organizations compared to 290 employees at December 31, 2008. In addition, to support our continued revenue growth during this period, we continued to invest in our website infrastructure, which resulted in increased depreciation and hosting services expense of $0.6 million and increased other expenses of $0.4 million for the three months ended December 31, 2009 as compared to the same period in 2008. For the six months ended December 31, 2009, depreciation and hosting services expense increased $1.3 million and other expenses increased $0.7 million as compared to the same period in 2008. Included in both the three and six months ended December 31, 2009 is $0.9 million of expense related to the abandonment of certain acquired intangibles recorded in the Soft Sight acquisition that were measured at fair value based on the perspective of a market participant, but we determined not to have an economic use for Vistaprint and were abandoned.
The increase in our marketing and selling expenses of $17.3 million for the three months ended December 31, 2009 as compared to the same period in 2008 was driven primarily by increases of $11.6 million in advertising costs related to new customer acquisition and costs of promotions targeted at our existing customer base, and increases in payroll and benefits related costs of $4.2 million. The increase in our marketing and selling expenses of $29.1 million for the six months ended December 31, 2009 as compared to the same period in 2008 was driven primarily by increases of $20.3 million in advertising and promotion costs and increases in payroll and benefits related costs of $6.5 million. During this period, we continued to expand our marketing organization and our design, sales and services centers. At December 31, 2009, we employed 737 employees in these organizations compared to 622 employees at December 31, 2008. In addition, payment processing fees paid to third-parties increased by $0.8 million and $1.4 million, during the three and six months ended December 31, 2009, respectively, as compared to the same periods in 2008 due to increased order volumes. Both the three and six months ended December 31, 2009 also included $0.4 million related to the cumulative adjustment for share-based payment costs described in Recent Developments above.
The increase in our general and administrative expenses of $5.9 million for the three months ended December 31, 2009 as compared to the same period in 2008 was primarily due to increased payroll and benefit costs of $2.8 million resulting from the continued growth of our executive management, finance, legal and human resource organizations, and increased third-party professional fees of $2.1 million related to ongoing litigation, and other general and administrative activities. The increase in our general and administrative expenses of $8.5 million for the six months ended December 31, 2009 as compared to the same period in 2008 was primarily due to increased payroll and benefit costs of $3.5 million resulting from the continued growth of our executive management, finance and human resource organizations, and increased third-party professional fees of $3.9 million related to ongoing litigation, the execution of our change of domicile to the Netherlands, and other general and administrative activities. Both the three and six months ended December 31, 2009 also included $0.4 million related to the cumulative adjustment for share-based payment costs described in Recent Developments above. At December 31, 2009, we employed 161 employees in these organizations compared to 135 employees at December 31, 2008.
Interest income, which consists of interest income earned on cash and cash equivalents and investments, decreased $0.5 million to $0.1 million for the three months ended December 31, 2009 from $0.6 million generated in the same period in 2008. Interest income decreased $1.1 million to $0.2 million for the six months ended December 31, 2009 from $1.3 million generated in the same period in 2008. The decrease was primarily due to lower interest rate yields on our cash and investments balances.
Interest expense, which consists of interest and other related fees paid to financial institutions on outstanding balances on our credit facilities, decreased to $0.2 million for the three months ended December 31, 2009 as compared to $0.4 million for the same period in 2008. Interest expense decreased to $0.5 million for the six months ended December 31, 2009 as compared to $0.7 million for the same period in 2008. As a result of the early repayment of $5.9 million of our euro revolving credit agreement, we incurred $0.1 million in prepayment penalties for the three and six months ended December 31, 2009. We expect that interest expense will continue to decline in future periods as a result of our early repayment of debt and the final payment in November 2009 of our original Canadian credit facility.
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